Picture this: Years ago, you dabbled in Bitcoin, buying a few tokens when they were worth next to nothing. Today, Bitcoin has soared, making millionaires out of those who held onto theirs. You think, “My time has come!“. Except—you’ve lost your password, and your wallet. Now unable to recover your lost bitcoin, your fortune is now gone forever. Or is it?
The Scope of the Problem: Lost Bitcoins
The first thing to note is, you’re not alone. Millions of bitcoins are lost, trapped in forgotten wallets. But is all hope lost? Not quite.
While Bitcoin has turned early adopters into millionaires, others haven’t been so fortunate. According to Unchained Capital, up to 3.8 million bitcoins—worth billions—are lost, out of the nearly 19.8 million in existence today. That’s almost 19% of the total Bitcoin supply that could be gone forever.
Hope on the Horizon: Recovering Lost Bitcoin
Bitcoin’s legendary security is both a blessing and a curse. Its cryptographic protections keep hackers at bay, but they also make it nearly impossible for users to recover their assets if they lose their passwords. However, there’s hope, thanks to companies like Crypto Asset Recovery.
Founded by Chris and Charlie Brooks, this father-and-son duo has been helping people recover lost Bitcoin and digital assets since 2017. “We estimate that about 2.5% of the lost Bitcoin could still be recoverable,” says Chris. That amounts to nearly $5.8 billion in assets, and they’ve been able to help many retrieve their long-lost cryptocurrency.
How to recover your lost Bitcoin
So, how does one go about recovering their lost Bitcoin? Crypto Asset Recovery uses a high-tech approach, “brute forcing” potential passwords based on user input. They work with clients who may have forgotten passwords or even corrupted hard drives holding private keys.
Their success rate isn’t guaranteed, though. “About half the wallets we crack are empty,” says Charlie. However, for those who have stored digital assets like Bitcoin, Ethereum, or even NFTs, recovery can still be possible if they have forgotten passwords or stored private keys on a functional but forgotten device.
Risks of Hiring the Wrong Recovery Firm
While companies like Crypto Asset Recovery are legitimate, the digital asset recovery space is rife with scammers. The Commodity Futures Trading Commission (CFTC) warns of fraudulent companies that promise to recover your lost Bitcoin but instead vanish with your upfront payment—or worse, the crypto itself. To protect yourself, look out for these red flags:
- Requests for upfront fees
- Lack of a physical U.S.-based address
- Requests to communicate solely through chat apps
- Asking for your bank details
Always verify the firm’s credentials before handing over any sensitive information.
3 Common Ways Crypto Gets Lost—and How to Avoid It
- Misunderstanding Custody
Many people don’t fully understand how cryptocurrency custody works. If you store your digital assets in a custodial wallet (managed by a trading firm), you can recover them through the firm. But if you take custody yourself, recovery can be impossible without your seed phrase, a series of 12 to 24 words that unlock your wallet. Without this, you’re on your own. - Losing Your Seed Phrase
As Charlie Brooks explains, “The much more likely risk for most people is losing their seed phrase.” Without it, your assets are gone forever. The solution? Store it safely. A simple $30 safe from Amazon can secure your seed phrase and prevent accidental loss or destruction. - Self-Sabotage
Sometimes, trying to fix the issue yourself only makes things worse. “Stop touching stuff—don’t reformat or reinstall a wallet,” Chris advises. Many clients attempt to resolve their own access issues, only to make their assets unrecoverable.
The Bottom Line: Protect and Recover What’s Yours
While an estimated 20% of Bitcoin might be lost, it’s worth checking whether your digital assets can be recovered. Whether it’s Bitcoin, NFTs, or other cryptocurrencies, taking steps to safeguard your information—and knowing who to trust in recovery—can make all the difference. As the world of cryptocurrency continues to grow, it’s crucial to understand how to manage your digital assets properly and avoid costly mistakes.
Till Next time!
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